This is an open, randomized, controlled, parallel group study. First phase: Following a four-week washout, subjects will be randomized to study therapy and enter a 14 week period in which dose will be escalated to a fixed, submaximal dose of each drug or their combination, after which HbA1c will be evaluated and response rate determined. Analysis will be performed at this stage. Second phase: An 8 week period in which subjects who have an FBG greater than or equal to 120 mg/dl are titrated until maximal dose of each drug. Third phase: subjects who do not achieve target control when treated with troglitazone on maximal dose in monotherapy will receive a test dose of repaglinide and subsequently be treated with combination therapy, including a titration period and a stabilzation period to a total for 10 weeks.